IDENTIFYING INVESTMENT OPPORTUNITIES FOR ADVANCED MANUFACTURING SYSTEMS WITH COMPARATIVE-INTEGRATED PERFORMANCE-MEASUREMENT

Traditional financial performance measurement systems have been critic ized for their inadequacy as an evaluation tool for today's advanced m anufacturing systems. We therefore propose a new performance measureme nt system under activity-based costing environment in order to conside r financial and non-financial criteria simultaneously. The primary obj ective of this system is to provide managers with an integral view of an activity in a comparative manner, and ultimately lead them to ident ify new activity investment opportunities. Main stages of the system i nvolve (1) identifying significant activities by a Pareto analysis, (2 ) measuring multi-attribute performances of chosen activities, (3) com puting comparative-integrated performance measure by TOPSIS, a multipl e attribute decision-making method, and (4) taking appropriate actions through the sensitivity analysis. In order to show the efficacy of th e proposed system, a case problem is presented.